After absorbing the news of President-elect Trump vowing to impose tariffs on China, Canada, and Mexico, even the Canadian dollar, which slumped to its lowest level since mid-2020 against the buck, has been trying to find some demand.
Bank of Canada Governor Mendez is on the docket today, and it will be interesting to see what the central banker has to say on the matter.
Overall, it does feel like the fact that Trump failed to mention Europe tariffs was somewhat helpful to the euro, the pound, and perhaps currencies overall.
Meanwhile, as we’ve already highlighted, the dollar has rallied to levels where it is becoming more attractive for medium- and longer-term players to consider a possible move in the other direction.
Otherwise, risk assets are well-supported, as reflected in U.S. equity futures.
Looking ahead, we have Canada wholesale sales, U.S. new home sales, U.S. consumer confidence readings, Richmond Fed manufacturing, and the key event of the day: the Fed minutes, which will be released later.
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